Do I Really Need Insurance?
Friday, June 13, 2008 @ 01:40
Insurance is expensive, we all know that, but our camera equipment may also be expensive and its loss or damage could entail some degree of hardship.
So, back to the age-old question, do I really need insurance?
The answer is it depends on how much your equipment is worth to you and how much its loss or damage would cause a hardship.
If we are anything other than an occasional photographer, using a relatively cheap point and click camera to record vacation memories, we are probably going to want at least some form of insurance on our equipment. If we've been at this for any length of time, it is reasonable to expect that we have probably acquired many thousands of dollars in equipment over the years that we wouldn't want to have to replace out of our own pocket. This brings to mind another question, what exactly will this insurance cover? This depends on what type of insurance you have. If you are just an amateur, who doesn't make a living with the equipment, the insurance will generally cover such things as fire and theft, even if the incident occurs when the equipment is not located in your home. However, standard homeowners policies usually only cover you for "named perils." These are listed in the policy and generally exclude accidental damage, such as dropping your camera while on a shoot. There will also be deductibles associated with each of the named perils. So, if you decide to add a floater to your existing homeowners or renters insurance, be aware that you may have an, out-of-pocket expense, if you have to replace any of your gear due to one of the named perils covered under the policy.
The other option you have open to you, if you use your equipment for non-commercial purposes, is looking into an "all risk" floater for your equipment. This type of policy is also attached to your homeowners or renters policy and includes a schedule of specific covered items for a much wider range of perils, generally anything that's not specifically excluded by the wording of the policy contract. This type of coverage will be a bit more expensive, but will provide a much more comprehensive coverage and is also far better if you have a lot of high-end equipment.
If you use your equipment professionally, you are getting into far more expensive insurance scenarios and it would be best to speak to a knowledgeable insurance agent to determine the right policy for you. Such a policy will probably not just cover the damage to your equipment, but coverage for "business interruption" or the downtime that would result if you had to replace equipment due to its loss or damage. Expect to pay more for this coverage, but it will be money well spent if you need to make a claim on equipment you can't work without.
